) sees second-quarter earnings per share of 2 cents to 4 cents on $24 million to $25 million in revenue. Piper Jaffray cut its rating to market perform.
Analyst Mark Mullikin says the downgrade from outperform is due to the company's disappointing second-quarter outlook. He notes the shortfall stems from Germany, where sales are expected to drop significantly from first-quarter levels due to changes in the German reimbursement system. He says the company doesn't expect quarterly sales in Germany to achieve first-quarter levels for the remainder of 2004.
Mullikin says management plans to update full-year 2004 guidance on its second-quarter conference call in the third week of July. Meanwhile, he cut his 7 cents second-quarter EPS estimate on $28 million in revenue to 3 cents EPS on $24.5 million in revenue; and 29 cents 2004 EPS estimate on $112.3 million in revenue to 22 cents EPS on $101.7 million in revenue.